A "kinked" demand curve reflects a tendency on the part of an oligopolist to:
a. follow price increases but not price reductions.
b. following price reductions but not price increases.
c. be unconcerned with rivals' behavior.
d. None of these.
b
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According to the graph, what quantity of domestic lumber will be supplied after a tariff of $0.50 per board foot is imposed?
A.1,100,000 board feet
B. 900,000 board feet
C. 700,000 board feet
D. 600,000 board feet
A tariff makes the total economy
A) better off because it increases the domestic production of the good. B) better off because it decreases the deadweight loss from international trade. C) worse off because it creates a deadweight loss. D) worse off because it creates revenue for the government. E) worse off because it decreases both domestic consumer surplus and domestic producer surplus.
One reason why adverse selection problems arise in health insurance markets is that
A) sick people are more likely to want health insurance than healthy people. B) because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone. C) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance. D) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers.
Total factor productivity encompasses
A) labor. B) capital. C) output. D) know-how.